Endlesslife Investment owns, operates and invests in a portfolio of infrastructure businesses. Infrastructure businesses are the providers of the basic, often essential, services, facilities and technology upon which the growth and development of a modern community depends. ELI offers investors an opportunity to participate in the ownership of such businesses.
Infrastructure businesses are the providers of the basic, often essential, services, facilities and technology upon which the growth and development of a modern community depends. Infrastructure businesses tend to generate sustainable and growing long-term cash flows as a result of relatively inelastic customer demand for the services they provide.
Characteristics of infrastructure businesses include:
§ Provision of a basic, often essential services;
§ Operations within a regulated or contractual framework;
§ Consistent, relatively inelastic demand throughout econoELI cycles;
§ Operations in sectors with high barriers to entry, which create sustainable competitive advantages;
§ Long-lived, high-value physical assets that are difficult to replicate or substitute around;
Predictable maintenance capital expenditure requirements; and,
Scalability, such that relatively small amounts of growth can generate significant increases in earnings before interest, taxes, depreciation and amortization, or EBITDA.
In addition to the benefits associated with these characteristics, revenues generated by our infrastructure businesses generally grow with inflation. Revenue growth is a function of the price escalators built into many customer contracts and the inflation and cost pass-through adjustments typically a part of pricing terms in patronage businesses or those provided for by the regulatory process in the case of regulated businesses. These provisions serve to insulate infrastructure businesses to a significant degree from the negative effects of inflation and commodity price risk.
The Company has entered into a management services agreement with Endlesslife InvestmentInfrastructure Management (USA) Inc. (the “Manager”), which defines the Manager’s duties and responsibilities. Subject to the oversight and supervision of the Company’s board of directors, the Manager directs the day-to-day business and affairs of the Company and its subsidiaries and investments.